Is an attorney needed if I have a realtor and property manager?

[Daniel Soovajian]

Hello BP community!

As an out of state investor, if I'm working with a licensed realtor to purchase a property and then hiring a property manager to manage that property after closing, is there any need to hire an attorney? If so, what gap(s) would the attorney fill that the realtor and property manager couldn't cover?

Thank you!

[Joe G.]

If you vetted the realtor and property manager well, there might be little need from an attorney unless you don't know about any state specific issues. Does the state you are purchasing in use statewide or local approved forms from the realtor association? If so, these have been vetted by an attorney most likely. 

However, an attorney might be needed for asset protection advice as well as a CPA for tax advice. Not sure what your exposure is at your price point, but keep in mind that your agent and PM will likely remind you they aren't a lawyer if you call them to complain later about something you didn't know about. 

For instance, in Washington DC for example, many times tenants are required to get first right of refusal prior to the sale of their rental. Sometimes they are even allowed to sell their FROR (first right of refusal) to third parties who can afford to pay low market price for the building. Not sure that all agents would think to mention that as they might assume you know and the PM won't mention it unless he wants to know which resident is going to be paying him after closing. 

An attorney would ask you what you strategy is so s/he can evaluate your exposure to lesser known housing laws. 

Good Luck!